In the company's
annual report ending 31 March 2005, Vaka said "a vital element in
being client-focused is pricing".
The industry has in recent times come under scathing attack over
allegations that firms participating in the market are colluding to
set up exorbitant prices. Vaka believes that transparency and value
for money are key to ensuring the insurance industry continues to
play an important role in encouraging long-term saving and financial
security for families.
For her company's part, she said "Botswana Life is actively
working with intermediaries to structure charges that are fair for
all industry participants and that offer value to clients".
For the year under review, the managing director said the largest
long-term insurance company in the country continued to record
impressive premium income, rising by 8 percent to P527 million. The
claims paid, she revealed, amounted to over P158 million. The
insurance company also recorded growth in new premium income of 3
percent to stand at P297 million and single premium income increased
by 15 percent to P230 million. Share capital and reserves shot up by
16 percent above the previous year's results to P471 million.
"The company is well capitalised and appropriate capital
management policies are in place," she said.
Despite the slowing economy, she said her company managed to
achieve the impressive results.
"These satisfactory results were achieved against a slowing
economy, rising unemployment, the impact of AIDS and increased
competition," she explained.
"While we are proud of this performance and the efforts made by
our people to achieve it, we are not complacent because we know the
pressures we faced in the review period will only intensify," she
said.
It is estimated that the total insurable population is about
180,000 and Botswana Life has the largest market share of about
100,000 policyholders. In order to remain a dominant force in the
ever-increasing competitive and fast becoming sophisticated market,
Vaka said it is vital to increase the level of service.
"That demands an upgrade of our processes and technology, in the
skills and management of our people and our ability to understand
what our customers want. It means we have to change our focus from
being policy-driven to being customer-centric," hence a need for
restructuring of the price mechanism.
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